|For What It’s Worth….|
Here are some compromise solutions that Congress is ignoring. Obviously, congressional Republicans are resisting any solution that the administration might claim credit for during the next election cycle. Regardless, here are some ideas that we can push for.
Further, Social Security is not really a “tax.” It is an annuity with some insurance added in. You have probably seen the ads on TV with the gorilla in the room and advertising “guaranteed income for life.” Well, that’s what Social Security is! AND, we are living longer and will draw upon the trust fund for more years in the future.
Additionally, SSA is
NOT a true Ponzi scheme! A Ponzi scheme fails because the underlying
assets are false or non-existent. Ponzi schemes fail because new
participants cease and the existing participants loose their money.
Worth noting – For those who feel Social Security should include some kind of “needs base” for benefits there is already a benefits weighting towards low income persons. They are called “Bend Points.” Further, higher income recipients can end up paying income taxes at their incremental rates. Thus, the bottom line is that higher income recipients get a less proportionate benefits than lower income persons! Additionally, there are proposals that will add a FICA tax on "unearned income" for high income persons.
Remember, SSA is precisely what the central government should be doing – providing security for the general population in ways that individuals could seldom achieve, regardless of their capacity or lack of it. Those who can handle their own retirement finances are likely to be earning enough money to invest independently in their own IRA’s and ROTH accounts, etc. But, do you recall how disastrous the stock market was for private investors during the down-turns in 2001 and 2008? Social Security is a safety net for everyone. Bottom line is that Americans have already paid into the system and are truly entitled to receive their benefits just as any other holder of U.S. debt. It is not the government’s place to use the SSA trust funds to finance “economic stimulus” and then attempt to weasel out of their commitments.
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Searching for solutions avoided by politicians and activists!
Social Security: Millions of people have paid into this trust fund with certain expressed conditions and returns. Social Security contributions now equal about 40% of the Federal revenues.
What is seldom mentioned is the fact that Social Security is the largest holder of Federal debt- more than twice of China's holdings. (Convenient Summary.)
These funds are as equally valid as any other debt issued by the Federal government. Also see SSA Is Not Broke!
Without Social Security we would end up with an aged poverty class unable to contribute to the national economy and dependent upon wellfare!